Portuguese Finance Minister Highlights Novo Banco Sale to BPCE as Boost to Financial Stability
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Lisbon, Portugal – October 26, 2023 – The sale of Novo Banco to French banking group BPCE will strengthen Portugal’s financial market by preventing excessive concentration and fostering competition, according to Finance Minister Joaquim Miranda Sarmento.
Key Details of the Sale
minister Sarmento made the statement during the signing ceremony of the accession agreements for the Portuguese State and the Resolution Fund to the Novo Banco sales contract, held in Lisbon. The agreement, finalized in June 2023, values Novo Banco at €6.4 billion.
“This operation reinforces the diversification of the national banking system, avoiding excessive concentrations and ensuring the balance and competitiveness of the Portuguese financial market,” Sarmento stated, as reported by official sources.
A Decade-Long Resolution
The sale marks the culmination of a process that began over ten years ago with the resolution of Banco espírito Santo.Sarmento emphasized the symbolic importance of the signing location – the Main Hall of the Ministry of Finance – describing it as “a space where the History of our country has been written for centuries, and which is, in itself, a symbol of reconstruction and national resilience.”
Benefits for Citizens and companies
The Minister further asserted that the transaction will provide “an added value in supporting and financing Portuguese citizens and companies.” He also noted that the Portuguese State “manages to ensure a significant recovery of public funds used in the restructuring of novobanco.”
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